Orca Gold Reports on the Latest Developments in the Sudan
VANCOUVER, Sept. 10, 2019 - Orca Gold Inc. (TSX-V: ORG) ("Orca" or the "Company") is pleased to provide an update on its activities in the Republic of the Sudan.
HIGHLIGHTS:
- July 17, 2019: transitional power-sharing agreement signed between the Transitional Military Council (TMC) and the opposition alliance, Forces for Freedom and Change (FFC), for a period of three years
- August 4, 2019: The TMC and FFC sign constitutional declaration
- August 21, 2019: A Sovereign Council, including 2 women, declared to lead the Sudan for 39 months
- August 21, 2019: Mr. Adballa Hamdok appointed Prime Minister by the Sovereign Council
- September 5, 2019: Prime Minister Hamdok appoints 18 Ministers, including 4 women
- September 6, 2019: African Union reinstates the Sudan
- Block 14 ready to build
DETAILS:
On August 4, 2019, the Transitional Military Council (TMC), which took power in the Sudan after the arrest of former President al Bashir, and the opposition Forces for Freedom and Change (FFC) signed a constitutional declaration, which was ratified on August 17 before regional and international witnesses. On Aug 21, after 25 years of military rule, a Sovereign Council was declared to lead the people of the Sudan during a 39-month period towards the establishment of an open, fair and transparent democratic process culminating in democratic elections in 2022-23. The Council comprises of six civilians and five military representatives and includes two women, one of whom is Christian.
Following its formation on Aug 21, the Sovereign Council immediately appointed Abdalla Hamdok as the new Prime Minister of the Sudan. Mr. Hamdok is an economist, a technocrat who has spent the last decades in the African Development Bank and the UN Economic Commission for Africa. On Sept 5, Prime Minister Hamdok appointed 18 new Ministers, with two more to be named. The new Cabinet includes the Sudan's first female Foreign Affairs Minister and a former World Bank economist. Mr. Hamdok has stated that the immediate issues for his new government are the Sudan's economic situation and achieving peace throughout the country.
The Sudan's new Government has the approval and support of the people of the Sudan and the international community at large, including the United States of America. On September 6, the African Union reinstated the Sudan's membership. The establishment of the Sovereign Council and a new government under the direction of Prime Minister Hamdok herald the start of a new era for the Sudan and its people, an era that looks to prioritize peace, economic restructuring, human rights, equality, freedom of speech and the international community.
With the appointment of a new Government and new Minister of Mines and Energy, Orca is recommencing discussions with the Sudan towards finalizing documentation to allow commencement of mine development at Block 14.
With stability in the Sudan and a collective objective of setting up a democratic process, Orca management is very optimistic about the prospects of near-term financing for the construction of a mine at Block 14. Over the coming weeks and months we will be working closely with the government of the Sudan and financial parties to achieve this objective.
Block 14 is one of the best construction-ready projects in Africa and highlights the potential of the Sudan to develop into one of the largest commercial gold producers in Africa.
Block 14 Summary
| Probable Reserves | 79.94Mt @ 1.11g/t for 2.85 Moz | |
| Average Annual production: | ||
| First 7 Years | 5.8Mtpa @ 1.49g/t averaging 228,000oz Au/year | |
| Life of Mine ("LOM") | 167,000oz Au/year | |
| Mine Life | 13.6 years | |
| Production Costs: | Yrs 1 - 7 | LOM |
| Cash Costs | $689/oz | $707/oz |
| All-in Sustaining Costs ("AISC") | $789/oz | $783/oz |
| After-Tax Net Present Value ("NPV") Discount rate: 5%; Gold Price: $1,250/oz | $403 million | |
| After-Tax Internal Rate of Return ("IRR") | 24.2% | |
| Payback Period | 3.9 years | |
| Pre-Production Capital | $328 million | |
| Sustaining Capital | $181 million | |
| FINAL PERMITTING | In Progress | |
On behalf of the Board of Directors,
"Rick Clark"
Rick Clark| CEO & Director | Orca Gold Inc. | 604.689.7842
About Orca Gold Inc.
Orca Gold Inc. (TSX-V: ORG) is a Canadian resource company focused on exploration and development opportunities in Africa. Led by a board of directors made up of industry experts and a management team with a track record of discovering and building significant mines globally, Orca is developing one of the leading gold projects in Africa. The Company is currently focused on its 70%-owned Block 14 Gold Project in the Republic of the Sudan on which a Feasibility Study was completed in November 2018.
The technical contents of this release have been approved by Hugh Stuart, BSc, MSc, a Qualified Person pursuant to National Instrument 43-101. Mr. Stuart is the President of the Company, a Chartered Geologist and a Fellow of the Geological Society of London.
Cautionary Statement Regarding Forward-Looking Information
Certain information contained in this press release constitutes "forward-looking information", within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur", "be achieved" or "has the potential to." Forward-looking statements contained in this press release may include statements regarding the timing of the completion of the second tranche of the private placement, the use of proceeds and the future operating or financial performance of the Company which involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: regulatory approvals, the ability of the parties to satisfy conditions precedent to the financing, market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar.com. The forward-looking statements included in this press release are made as of the date of this press release and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
SOURCE Orca Gold Inc.
Contact
Elina Chow, Investor Relations Consultant, Catch Advisory Group Inc., 416.645.0935 x 226, info@orcagold.com